InfuSystem Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2017

9.	Leases

The Company leases office space, service facility centers and equipment under non-cancelable capital and operating lease arrangements. The Company periodically enters into capital leases to finance the purchase of ambulatory infusion pumps. The pumps are capitalized into medical equipment in rental service at their fair market value, which equals the value of the future minimum lease payments and are depreciated over the useful life of the pumps. The weighted average interest rate under capital leases was 4.6% as of March 31, 2017. The leases for office space and service facility centers used in the Company’s logistics operations are operating leases. In most cases, the Company expects its facility leases will be renewed or replaced by other leases in the ordinary course of business.

Future minimum rental payments pursuant to leases that have an initial or remaining non-cancelable lease term in excess of one year as of March 31, 2017 are as follows (in thousands):


	Capital Leases			Operating Leases		Total
2017	$	2,273		$	718	$	2,991
2018		1,864			831		2,695
2019		608			562		1,170
2020		312			178		490
2021		10			181		191
Thereafter		0			938		938

Total require payments	$	5,067		$	3,408	$	8,475

Less amounts representing interest (3.1% to 10.5%)		(230	)

Present value of minimum lease payments		4,837
Less current maturities		(2,715	)

Long-term capital lease liability	$	2,122

At March 31, 2017 and December 31, 2016, pump assets obtained under capital leases, had a cost of approximately $14.0 million and $13.9 million, respectively, and accumulated depreciation of $4.4 million and $3.9 million, respectively.

The Company had minimum future operating lease commitments, mainly related to its leased facilities. Related rental expense for facilities and other equipment from third parties under operating leases for the three months ended March 31, 2017 and 2016 was $0.2 million.